The High Court also chided IHCL for their "urgency" in appealing against the single judge order, saying India was "not a banana republic" and the NDMC would not have seized a functioning hotel.
Yesterday, the single judge had dismissed the suit by the current operator, Tata group's IHCL, to renew its licence and upheld NDMC's decision to go for auction.
During a brief hearing on the appeal, a bench of justices Pradeep Nandrajog and Pratibha Rani observed "what was the great urgency" to file an appeal having "half baked grounds."
"Don't show anxiety. They (authorities concerned) are not going to come as of now. Heavens are not going to fall if you would have waited for some more time.
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"Take your time and first try to digest the judgement of the single judge. It is a running hotel. Can they (NDMC) come and seize it? Has the country become a banana republic," the bench observed orally.
"You (NDMC) are not going to take any precipitative action," the bench told the counsel for NDMC, to which they agreed. The court fixed the matter for further hearing on September 15.
The property, owned by NDMC, was given to IHCL on a lease for 33 years, which had ended in 2011. The company was given nine temporary extensions since then on various grounds with three of them being in the last year itself.
IHCL had approached the high court seeking a decree of permanent injunction restraining the NDMC from interfering in any manner with the possession, right to operate, run and maintain the hotel at the prime location in Lutyen's Delhi.
IHCL had sought a direction restraining the NDMC from conducting an auction to running the hotel.
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